My Economic Way of Thinking Exam's Question
1. Give an example of sunk cost and show how it should be used in decision making
Sunk cost is retrospective cost in the past that has been incurred and cannot be recovered or traded. In making decision, one should not take sunk cost into account (it should be ignored).
All the time, energy, and resources that you've spent in building relationship with your partner should not be considered in making decision whether or not you break up with your partner. All gone is gone. Don't cry over the spill milk
p.s : I did wrote that as my answer. My lecturer must be proud of me; applying economic concept to relationship issue.
Chocolate Mud Cake
3 years ago